Ternium Earnings Call Transcripts
Fiscal Year 2025
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Resilient 2025 results driven by $250M in cost savings and operational efficiency, with a 10% EBITDA margin and strong cash generation. Expansion projects advanced, including new lines in Mexico and a green loan, while trade policy shifts and safety incidents shaped the outlook. Margins and volumes are expected to improve in 2026, with CapEx set to decline.
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Q3 2025 saw higher EBITDA from cost reductions, but a net loss due to a large non-cash write-down at Usiminas. CapEx remains high for expansion, with a stable dividend and cautious outlook amid trade policy uncertainty and regional demand shifts.
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Adjusted EBITDA rose 25% in Q2 2025, driven by higher steel prices in Mexico and cost efficiencies, with net income at $259 million. CAPEX peaked at $800 million, and further EBITDA and margin improvements are expected as cost-saving initiatives continue.
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Sequential EBITDA and adjusted net income improved in Q1 2025, supported by cost reductions and higher shipments, despite trade and market uncertainties. Expansion project capex was revised up to $4 billion, with strong cash position and stable dividend policy maintained.
Fiscal Year 2024
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2024 saw 16 million tons shipped, $2B adjusted EBITDA, and strong net cash despite market headwinds. Expansion in Mexico and a new wind farm in Argentina advanced, while trade and pricing pressures persisted. Q1 2025 is expected to bring margin improvement and stable shipments.
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Q3 2024 saw lower margins due to falling steel prices, but shipments rose in all key markets. Major expansion projects and sustainability initiatives are progressing, with 2025 CapEx set to reach a record $2.3 billion. Dividend yield remains high at about 8%.
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Adjusted EBITDA reached $545M in Q2 2024 with a 12% margin, while net income was impacted by a $783M litigation provision. Expansion projects in Mexico and Argentina are progressing, and margins are expected to recover after a Q3 bottom as steel prices rise and costs decline.